Which investment bubble burst when the Nasdaq Composite peaked in March 2000?

The dot-com bubble burst after the Nasdaq Composite peaked in March 2000.

The bubble centered on internet-related companies, especially firms whose business models depended on rapid online growth rather than current profits. Investors poured money into technology shares, and many companies adopted “.com” names or internet strategies to attract capital. Valuations rose far beyond what many businesses could justify through revenue or earnings.

The Nasdaq Composite reached an intraday peak of 5,132.52 on March 10, 2000. It then declined sharply as investors became more skeptical, interest rates rose, and poorly financed companies ran out of cash. By October 2002, the index had lost about 78% from its peak.

The collapse did not mean the internet was unimportant. Several durable companies survived or emerged stronger, while many speculative ventures disappeared. The dot-com crash is often confused with the later housing and credit crisis, but it primarily involved technology and internet-stock valuations.